Microsoft on Wednesday, November 5, announced that it will begin in-country processing of Microsoft 365 Copilot interactions in four countries — including India — by the end of calendar year 2025. The US technology giant said the move is aimed at giving customers more control over their AI data and improving Copilot’s performance by reducing latency. Along with India, this feature will also be available in Australia, Japan and the United Kingdom during the same period.
In 2026, this capability will expand to Canada, Germany, Italy, Malaysia, Poland, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates and the United States.
Microsoft explained that in-country processing allows Copilot interaction data to be processed in data centers within the customer’s country, giving customers greater control over their data.
This offering is designed to provide customers, particularly those operating in government and highly regulated industries, access to Microsoft 365 CoPilot with additional options for governance, security, and regulatory compliance.
“A map of the Microsoft 365 data residency and processing commitments highlighting the countries where in-country data processes will be available by the end of 2025 and in 2026,” the release said.
Currently, Microsoft offers in-country data residency to Microsoft 365 and Microsoft 365 CoPilot customers in 27 countries and in-region data residency and processing for countries within the European Union (EU) data border.
India’s data centre capacity is expected to grow from the current 1.2 GW to about 8 GW by 2030, expanding at an annual rate of nearly 17 per cent, driven by the country’s rapid digital transformation, growing internet usage, and rising demand for AI and cloud-based services, according to Trade Brains report.
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